Australia: Equities slump on US trade tensions with China, Mexico

[SYDNEY] Australian shares ended over 1 per cent lower on Monday, reflecting investors concerns that US President Donald Trump's aggressive trade diplomacy toward both China and Mexico could tip the United States and other major economies into recession.

The Reserve Bank of Australia (RBA) is expected to cut its policy rate on Tuesday for the first time in almost three years by reducing the cash rate to a record low 1.25 per cent.

Banks and resources stocks led declines as Australia's S&P/ASX 200 index closed 1.2 per cent, or 76.4 points, lower at 6,320.5.

New Zealand's stock market was closed on Monday for a public holiday.

REUTERS